Fair Trade Premiums: What They Are & Why They Matter?

A cacao pod is harvested by farmer

Mountain Rose Herbs is honored to work closely with small-scale producers around the world, either directly or through farming cooperatives. Many aspects of farming, wild harvesting, and processing are difficult and prone to outside pressures like natural disasters, market volatility, and climate change. These challenges are why we partner with Fair Trade Certified operations when possible.

Fair Trade Certification protects and fairly compensates the most vulnerable actors in the supply chain. One of the fundamental principles of the Fair Trade system that helps mitigate these difficulties is Fair Trade premiums. This additional sum of money is added to the already fairly negotiated purchase price for any certified product. These community development funds are collected by the certified producer in the country of origin and through a democratic system, are invested in community projects that address social, economic, or environmental needs. Fund usage and associated projects are required to be collaboratively planned, follow certain standards, and be well documented to ensure a fair and equitable distribution.

Part of the requirements of being a Fair Trade certified farmer is sharing the highlights of Fair Trade fund usage with their customers through an annual public report. As such, we at Mountain Rose Herbs look forward to seeing all the amazing things our suppliers do with their funds each year. It is a way for us to see the good our Fair Trade commitment is doing and also allows us to feel more connected to the people in the farm communities.  

A selection of fair trade cacao powder, cacao nibs, and cacao beans in bowls

An example of this important Fair Trade feature comes from our long-term organic yerba maté supplier. This fully organic operation is in the southern Brazilian state of Parama. They have chosen to focus their community development funds on education, youth resources, and women’s health.

Directly through these funds, multiple improvements have been made possible. Schools in the community have benefited from structural updates as well as the refurbishment of a library. The emphasis on education was noted in a program developed to empower teenage girls in the community. Elementary schools were also supported through new facilities like a playroom and a dental hygiene program. Health care was likewise highlighted by partnering with a women’s cancer treatment network. This included funding for screening and support facilities.

These examples show how this Fair Trade partner has set specific goals for improving health and education in the community. Other Fair Trade partners, like our organic cacao supplier, have spent their funds on projects like sustainability initiatives around farming and training for employees in alternative trades to generate new opportunities. We are so proud to support this work and it’s why we continue to source more of our offerings from Fair Trade Certified farms and co-ops.



Want to Learn More About Fair Trade Certification?

Read About Our Cacao Case Study



You may also be interested in:

 

A selection of fair trade products offered by Mountain Rose Herbs

 


Topics: Inside Mountain Rose Herbs, Our Farms, Sustainability

Thomas K.

Written by Thomas K. on November 4, 2024

Thomas Klingensmith is the Regulatory Compliance Officer at Mountain Rose Herbs and has worked for the company for over 10 years. Most of his time with the company has been spent in their world class testing laboratory. Thomas comes from a background in local food systems and holds a master’s degree in Anthropology. When he isn’t interpreting the most recent revisions to Federal Organic Policy or collaborating with vendors and customers around the world, he can be found exploring the Oregon wilderness looking for the coldest water to swim in, trying a new recipe from his collection of Southeast Asian cookbooks, or planning his next international trip.


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Fair Trade Premiums: What They Are & Why They Matter?

A cacao pod is harvested by farmer

Mountain Rose Herbs is honored to work closely with small-scale producers around the world, either directly or through farming cooperatives. Many aspects of farming, wild harvesting, and processing are difficult and prone to outside pressures like natural disasters, market volatility, and climate change. These challenges are why we partner with Fair Trade Certified operations when possible.

Fair Trade Certification protects and fairly compensates the most vulnerable actors in the supply chain. One of the fundamental principles of the Fair Trade system that helps mitigate these difficulties is Fair Trade premiums. This additional sum of money is added to the already fairly negotiated purchase price for any certified product. These community development funds are collected by the certified producer in the country of origin and through a democratic system, are invested in community projects that address social, economic, or environmental needs. Fund usage and associated projects are required to be collaboratively planned, follow certain standards, and be well documented to ensure a fair and equitable distribution.

Part of the requirements of being a Fair Trade certified farmer is sharing the highlights of Fair Trade fund usage with their customers through an annual public report. As such, we at Mountain Rose Herbs look forward to seeing all the amazing things our suppliers do with their funds each year. It is a way for us to see the good our Fair Trade commitment is doing and also allows us to feel more connected to the people in the farm communities.  

A selection of fair trade cacao powder, cacao nibs, and cacao beans in bowls

An example of this important Fair Trade feature comes from our long-term organic yerba maté supplier. This fully organic operation is in the southern Brazilian state of Parama. They have chosen to focus their community development funds on education, youth resources, and women’s health.

Directly through these funds, multiple improvements have been made possible. Schools in the community have benefited from structural updates as well as the refurbishment of a library. The emphasis on education was noted in a program developed to empower teenage girls in the community. Elementary schools were also supported through new facilities like a playroom and a dental hygiene program. Health care was likewise highlighted by partnering with a women’s cancer treatment network. This included funding for screening and support facilities.

These examples show how this Fair Trade partner has set specific goals for improving health and education in the community. Other Fair Trade partners, like our organic cacao supplier, have spent their funds on projects like sustainability initiatives around farming and training for employees in alternative trades to generate new opportunities. We are so proud to support this work and it’s why we continue to source more of our offerings from Fair Trade Certified farms and co-ops.



Want to Learn More About Fair Trade Certification?

Read About Our Cacao Case Study



You may also be interested in:

 

A selection of fair trade products offered by Mountain Rose Herbs

 


Topics: Inside Mountain Rose Herbs, Our Farms, Sustainability

Thomas K.

Written by Thomas K. on November 4, 2024

Thomas Klingensmith is the Regulatory Compliance Officer at Mountain Rose Herbs and has worked for the company for over 10 years. Most of his time with the company has been spent in their world class testing laboratory. Thomas comes from a background in local food systems and holds a master’s degree in Anthropology. When he isn’t interpreting the most recent revisions to Federal Organic Policy or collaborating with vendors and customers around the world, he can be found exploring the Oregon wilderness looking for the coldest water to swim in, trying a new recipe from his collection of Southeast Asian cookbooks, or planning his next international trip.